LP or GP led fund restructurings

Direct secondary purchases of tail-end assets

Replacement GP or Co-GP engagements

Portfolio Financing: Crestline’s Portfolio Financing strategy provides bespoke financing to allow private equity managers to provide liquidity to their LPs or provide selective follow-on growth capital to portfolio companies, which may enhance the future NAV of the fund that receives financing. Portfolio financing provides a means by which the manager can provide liquidity to existing LPs without prematurely selling portfolio companies, which may enhance the IRR and DPI of the fund receiving financing. Portfolio financing also allows private equity managers who no longer have the ability to call capital to meet the follow-on capital needs of their portfolio companies without diluting current LPs. Lastly, portfolio financing can also be deployed by younger funds directly to non-creditworthy companies in the portfolio with an enhanced support or guaranty from the fund.

Fund Restructuring: Crestline’s complementary Fund Restructuring strategy provides custom restructuring solutions with enhanced governance designed to satisfy the various needs of PE funds and their stakeholders, including liquidity solutions for LPs desiring an exit, follow-on capital for portfolio companies, balance sheet restructuring, and additional management support for the enhancement of asset values.

For more information, please contact David Philipp, dphilipp@crestlineinc.com or Amit Mahajan, amahajan@crestlineinc.com

OVERVIEWPORTFOLIO FINANCING TRANSACTIONS

OVERVIEWFUND RESTRUCTURING TRANSACTIONS

INVESTMENT PARAMETER

INVESTMENT PARAMETER

SIZE

$10mm - $250mm

TERM

1-5 years

GEOGRAPHY

Primarily North America and Western Europe

INDUSTRY FOCUS

Primary: traditional industries and operating companies

Secondary: real estate and infrastructure

PORTFOLIO CHARACTERISTICS

Multiple remaining investments

Mature companies, cash flow positive

Minority or majority shareholding

Debt or equity stakes in portfolio companies

SIZE

$20mm - $250mm

GEOGRAPHY

Primarily North America and Western Europe

INDUSTRY FOCUS

Primary: traditional industries and operating companies

Secondary: real estate and infrastructure

FUND CHARACTERISTICS

GPs may be unable to access required capital to support portfolio companies

Certain LPs may desire an exit while others wish to remain invested

GP interests may be misaligned with LPs due to being out of the carry

Fund may need additional investment management / GP support

STRUCTURE

STRUCTURE

Provide capital to a fund or directly to one or more underlying companies (with fund-level guaranty)

Flexible Structure: Senior Debt or Preferred Equity

Flexible Interest: PIK, Cash

Flexible Principal Repayment: Amortizing or Contingent on exit of portfolio

Fund Restructuring - inject new capital into an existing fund while co-managing assets

Direct Secondary - purchase targeted assets into a new vehicle. Existing LPs generally have an option to participate in new structure